Rent vs. Sell

[Dan A]

What would you do?

Upfront thanks for your advice!!

Considering the rent vs. sell decision before we move into a new place....

Currently I can rent my townhome for $1,350 per month which equals my mortgage payment, taxes, HOA, and my rental insurance premiums. Basically, I would break even each month before maintenance costs and vacancies. I am planning on putting $3-5K aside for the rainy days that are sure to come. Over the long term I realize I'll probably have to set aside more. I would manage it myself as our new place will be a mile away. The mortgage is about $97K, and I could sell it for $200K. The mortgage will be paid off in 10 years. It was built in 2005.

I do like the tax write off, the diversification play on my balance sheet, and the idea of doing a new venture. Also, over the long term I see it as a way to pay for my kids' education. I tossed the idea around about refinancing my loan into a 30yr, therefore being able to have positive cash flows by my simple calculations, but to refinance would cost money I could just set aside for the rainy days. I am leaning towards renting the place, but I realize I am novice at this and others can share valuable insight. What am I not considering and what would you do?